An analysis of nonpartisan election media expenditure decisions using limited dependent variable methods

Abstract

In order to maximize the information disseminating function of campaigning, candidates for political office must make numerous decisions regarding the allocation of resources for various campaign activities. One of the most important financial decisions a candidate must make occurs in determining the extent and character of mass media expenditures. To determine mass media budget allocations, two decisions are required. First, the type(s) of mass media to employ in the campaign, and second, the amount of the budget to allocate to each media selected. These two decisions are not necessarily independent since high fixed costs are associated with employing electronic media. In this paper, we examine one particular form of mass media, television, and its use in nonpartisan elections. Because of the nature of the decision process in using television advertising an estimation technique for limited dependent variables is employed to predict first, the probability that a candidate will use television advertising in a campaign, and second, the amount spent on such advertising. The occurrence of these outcomes is considered to be a function of both the total financial resources available to the candidate and the type (importance) of the political office sought.